Business Studies Multiple Choice Question – 24 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which ONE of the following is the correct definition of market share? Select ONE answer:

The total sales of all businesses in a particular market.

The sales of one particular business as a proportion of the total sales in a market.

A group of customers that share a common characteristic.

A part or portion of a business owned by another business or individual.

The share that is taken by large businesses.

What is the importance of market share to businesses?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 2 – Market share is the proportion of a market served by a particular brand or business. Gaining market share is classed as a financial (as opposed to non-financial) aim or objective when starting up a business. It cannot be calculated without knowledge of market size, which is summarised in Option A. Option C is a definition of a market segment. Option D is a definition of a ‘share’ in a business.